TIDMLRS

RNS Number : 4284D

Latin Resources Limited

29 April 2013

26 April 2013

Junefield High Value Metals Investments Limited,

13/F Bank of East Asia

Harbour View Centre

56 Gloucester Road Wan Chai

HONG KONG

Dear Option holder,

Option Entitlement Issue

As announced on 5 April 2013 and updated on 23 April 2013, Latin Resources Limited (ACN 131 405 144) (Company or LRS) is undertaking a non-renounceable Option entitlement issue (Entitlement Issue or Offer) of 1 option to acquire a fully paid ordinary share (Share) in the capital of the Company, exercisable at $0.20 on or before the date that is 18 months after the date issue (Option), for every 2 Shares held by eligible shareholders on 8 May 2013.

The issue price of an Option under the Offer is $0.01 (Issue Price). The Company lodged a prospectus for the Offer (Prospectus) with ASIC and ASX on 26 April 2013.

The proposed use of funds raised under the Offer is set out below:

 
 Proceeds of the Offer                      Full Subscription($)     % 
 Progress the Company's projects in Peru          500,000          47.5% 
                                           ---------------------  ------ 
 Working capital                                  500,097          47.5% 
                                           ---------------------  ------ 
 Expenses of the Offer(1)                          52,790          5.0% 
                                           ---------------------  ------ 
 Total                                           1,052,887          100 
                                           ---------------------  ------ 
 

The Offer is being made to all shareholders of the Company named on its register of members at 5:00pm (WST) on 8 May 2013, whose registered address is in Australia, New Zealand, Hong Kong or the United Kingdom (excluding depository interest holders) (Eligible Shareholders).

The full terms and conditions of the Options are disclosed in the Prospectus to be sent to Eligible Shareholders on 14 May 2013 and released on ASX and the Company website on 26 April 2013.

Following completion of the Offer, the Company will have issued approximately 105,288,717 Options. The total number of options on issue in the Company will increase to approximately 115,288,717.

Optionholders

The terms and conditions of the options you currently hold do not entitle you to participate in the Entitlement Issue unless you exercise your options in time for new shares to be allotted and to be entered on the Company's register of members on or before 5:00pm (WST) on 8 May 2013 (Record Date).

To exercise your options and thereby participate in the Rights Issue, you will need to deliver the following to the Company office at Suite 2, Level 1, 254 Rokeby Road, Subiaco, Western Australia 6008:

   (a)           A notice of exercise of options (attached to this letter); 

(b) An option certificate (where the options are certificated) or a copy of a holding statement (where the options are uncertificated) in respect of those options to be exercised; and

(c) Payment for the exercise price in respect of those options to be exercised by way of a cheque made payable to "Latin Resources" and crossed "Not negotiable".

To ensure that your new shares are allotted prior to the Record Date, the above must be received by Latin Resources Limited no later than 2 May 2013. If received after this date, allotment of new shares prior to the Record Date cannot be assured.

Before deciding whether to exercise any or all of your options, you should read the Prospectus in its entirety.

This notice is important and requires immediate attention. If you have any queries concerning the Entitlement Issue, please contact your financial adviser or Mr Anthony Begovich, the Company Secretary on +61 8 9485 0601

Yours sincerely

Anthony Begovich

Company secretary

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEAALNAFDDEEF

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